Moody's assigns Visant Holding notes Caa2

Moody's Investors Service said it assigned a Caa2 rating to Visant Holding Corp.'s proposed $350 million 8.75% senior unsecured notes due 2013, whose proceeds will fund a $342.5 million dividend to existing shareholders, which also prompted a change in the outlook to negative from stable.

All other ratings have been affirmed, the agency said, including Visant Corp.'s $250 million senior secured revolving credit facility due 2009 at B1, $817 million senior secured term loan C due 2011 at B1 and $500 million 7.625% senior subordinated notes due 2012 at B3.

The agency said the ratings reflect Visant's high leverage of 6.3 times debt to adjusted EBITDA at fiscal year ended 2005 and Moody's concern that it will take considerable time before projected leverage returns to the level of 5.2 times.

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